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Lido (LDO) Surpasses AAVE in Total Value Locked (TVL)

3 mins
Updated by Levy Prata
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In Brief

  • Lido TVL has now surpassed Aave following a successful deployment on Kusama, Polygon, and Polkadot in 2022.
  • Aave has seen a slow increase in TVL, but Lido’s TVL continue to increase at an enormous rate.
  • Lido currently has 15% less TVL than MakerDAO and 24% less TVL than Curve.
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Increased popularity of Lido (LDO) has seen the decentralized protocol surpass Aave (AAVE) in total value locked at the beginning of March 2022.

Lido (LDO) has seen its total value locked (TVL) beat out other major competitors such as Aave, Convex Finance (CVX), and Wrapped Bitcoin (WBTC). The Lido protocol managed to begin the month of March with approximately $13.86 billion in TVL, according to BeInCrypto Research.

Source: DeFillama

Although Lido opened February with total value locked at $8.35 billion, the protocol still managed to hold the largest share against one of the popular decentralized protocols in the space today, Aave.

Lido’s popularity continues to surge in 2022

As an ERC 20 token which was launched on the Ethereum blockchain in 2020, Lido has experienced a large amount of growth. After being deployed on the Terra (LUNA) and Solana (SOL) blockchain networks in 2021, the protocol increased from a TVL of $743 million by the end of the first quarter of 2021, to a staggering $11.74 billion by the end of December 2021.

However, by the end of February 2022, Lido has become a permanent fixture within the top 10 DAPPS with the most total value locked. More importantly, Lido dropped to $7.74 billion by the close of January 2022 followin the recent market correction, and spiked by 79% to the previously mentioned $13.86 billion.

Most of the protocol’s success comes from the extensive groth it has witnessed in 2022. As of March, Aside from being deployed on Ethereum, Terra, and Solana, Lido has launched on Polygon, Polkadot and Kusama. This has given millions of users of the smart-contracts-backed blockchains the opportunity to stake with LIDO and earn daily rewards in the respective native tokens of the blockchain they use.

With that said, Terra has surpassed Ethereum as the blockchain with the most total value locked (TVL) on the Lido protocol with $7.72 billion. Ethereum is second with $6.03 billion, and Solana wraps up the value locked with $233.15 million.

The total value locked in Lido Protocol continues to gain popularity in March. The protocol saw a 23% spike from $11.18 billion by the close of February to more than $13 billion in the opening day of the third month of 2022.

Aave Falls behind Lido in Total Value Locked

Top ten protocol, Aave (AAVE) is ranked higher than Lido (LDO) when market capitalization comes to the discussion table. However, its TVL has fallen behind Lido in the opening days of March 2022. The end of February saw Aave’s TVL hit $11.53 billion. This figure was relatively lower than Aave TVL by the end of January 2022 which was $11.65 billion. Overall, Aave’s total value locked slipped 17% between 1 January and 1 February, 2022.  

Source: DeFillama

Like Lido, Aave is one of the protocols that has benefitted massively from the patronage of decentralized protocols. Aave protocol is an ERC token that was originally deployed on the Ethereum Network. As of March, Aave has also launched on Avalanche and Polygon. By the end of the first quarter of 2021, TVL in the protocol was $4.66 billion. There was a 109% increase in the TVL by the close of June 2021 to $9.74 billion. Buoyed by the bullish sentiment an growth within the crypto finance market towards the end of 2021. Total value locked in Aave spiked to $14.16 billion, a staggering 45% increase of June’s figure.

The increasing demand for decentralized finance products has contributed immensely to the growth both protocols have seen in recent months.

At the time of writing, Lido had experienced more than 60% increase in TVL over the last month, and Aave had increased by more than 3% in the same period.

For BeInCrypto’s previous Bitcoin (BTC) analysis, click here

Top crypto platforms in the US | March 2024



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Raphael Minter
As a writer, researcher, and analyst of centralized and decentralized financial instruments (stocks, commodities, metals, and cryptocurrencies), he started experimenting with financial asset trading in 2011. He ventured into full-time long term investing of cryptocurrencies in 2016.